The pay gap in the UK is the fifth worst in Europe with a 19.7 per cent gap in 2013, according to figures from Eurostat.
British Prime Minister David Cameron wants to create pressure to help drive up women's wages and close the pay gap between men and women "within a generation".
"Today I'm announcing a really big move: we will make every single company with 250 employees or more publish the gap between average female earnings and average male earnings.
"Our aim is to fundamentally rebalance our economy - to transform Britain from a high-welfare, high-tax, low-pay economy into a lower-welfare, lower-tax, higher-pay society," he added.
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His announcement came as the UK government launched an official consultation titled 'Closing the Gender Gap' today.
"This consultation seeks views on the government's manifesto commitment to require larger employers to publish gender pay information," a statement said.
According to the UK's Office for National Statistics (ONS), women earn 0.2 per cent more than men in their 30s, only to fall behind in their 40s when they earn 14 per cent less in hourly wages.
The Confederation of British Industry (CBI), which represents employers, said it preferred a voluntary approach.
CBI director-general Katja Hall said: "While we believe publishing pay gap data could be misleading, we will work with the government to ensure that rules on what is published are flexible enough to be relevant to each company.
"To see real progress, however, we need to challenge occupational stereotypes by encouraging more women into male dominated industries and investing in careers advice.